For period ending   April  30, 2002

Exhibit 77D and 77 Q1(b)

File number 811-7540

Investment Policy Changes

The Fund's board approved modifications to the
Fund's investment policies as a result of a new
rule promulgated by the Securities and Exchange
Commission.  This rule generally requires a fund
with a name suggesting that it focuses on a
particular type of investment to invest at least
80% of its net assets (plus the amount of any
borrowing for investment purposes) in the type of
investment suggested by its name.  The investment
policy changes became effective on April 8, 2002.
These changes are not expected to affect
materially portfolio management.

The new 80% policy has been adopted as a "non-
fundamental" investment policy.  This means that
this investment policy may be changed by the
Fund's board without shareholder approval.
However, the Fund has also adopted a policy to
provide its shareholders with at least 60 days'
prior written notice of any change to its 80%
investment policy.  Many of the Fund's other
investment policies also are non-fundamental
policies and may be changed by its board without
shareholder approval.  The Fund will interpret
these new policies as if the following phrase
appeared immediately after the words "net
assets":  "(plus the amount of any borrowing for
investment purposes)."  If subsequent to an
investment, the Fund's 80% policy is no longer met
(e.g., bonds are called or mature resulting in a
large influx of cash), then under normal
circumstances, the Fund's future investments would
be made in a manner that would bring the Fund's
investments back in line with the 80% threshold.

In order to place these changes in context,
reproduced below are prior policies that were
impacted by this change as well as new policies
which replace the prior policies:

Prior Policies Impacted by Change:

Under normal market conditions, the Fund
invests at least 65% of its total assets in
U.S. dollar-denominated debt securities of
issuers located in emerging market countries,
including Brady Bonds . and zero coupon
securities.  The Fund may also invest up to
35% of its total assets in non-U.S. dollar-
denominated debt securities (i) of issuers
located in emerging market countries or (ii)
of issuers not located in emerging market
countries that are denominated in or indexed
to the currencies of emerging market
countries.  The Fund's investment in debt
securities will consist of (i) debt
securities issued or guaranteed by
governments, their agencies,
instrumentalities or political subdivisions
located in emerging market countries, or by
central banks located in emerging market
countries (collectively, "Sovereign Debt");
(ii) interests in issuers organized and
operated for the purpose of securitizing or
restructuring the investment characteristics
of Sovereign Debt; and (iii) debt securities
issued by banks and other business entities
located in emerging market countries or
issued by banks or other business entities
not located in emerging market countries but
denominated in or indexed to the currencies
of emerging market countries.
.. . . .

The Fund may invest up to 35% of its total
assets in non-U.S. dollar-denominated debt
securities that may be denominated in the
local currencies of emerging market
countries, as well as in reserve currencies
such as the British Pound Sterling ..
...

When [the adviser] . believes unusual
circumstances warrant a defensive posture,
the Fund temporarily may commit all or any
portion of its assets to cash (U.S. dollars
or foreign currencies) or money market
instruments of U.S. or foreign issuers,
including repurchase agreements.  In
addition, the fund may commit up to 35% of
its assets to cash (U.S. dollars) or U.S.
dollar-denominated money market instruments
of U.S. issuers, including repurchase
agreements, for liquidity purposes (such as
clearance of portfolio transactions, the
payment of dividends and expenses and share
repurchases) or pending investment.



Revised Policies:


Under normal market conditions, the Fund
invests at least 65% of its total assets in
debt securities of issuers located in
emerging market countries, including Brady
Bonds . and zero coupon securities.  The
Fund's investment in debt securities may
include (i) debt securities issued or
guaranteed by governments, their agencies,
instrumentalities or political subdivisions
located in emerging market countries, or by
central banks located in emerging market
countries (collectively, "Sovereign Debt");
(ii) interests in issuers organized and
operated for the purpose of securitizing or
restructuring the investment characteristics
of Sovereign Debt; and (iii) debt securities
issued by banks and other business entities
located in emerging market countries or
issued by banks or other business entities
not located in emerging market countries but
denominated in or indexed to the currencies
of or interest rates prevailing in emerging
market countries.  . . . .

Under normal circumstances, the Fund invests
at least 80% of its net assets in U.S.
dollar-denominated debt securities.  The Fund
may invest up to 20% of its net assets in
non-U.S. dollar-denominated debt securities
under normal circumstances; these investments
may be denominated in the local currencies of
emerging market countries, as well as in
reserve currencies such as the British Pound
Sterling ..   These non-U.S. dollar-
denominated investments may include debt
securities (i) of issuers located in emerging
market countries or (ii) of issuers not
located in emerging market countries that are
denominated in or indexed to the currencies
of emerging market countries.

When [the adviser] . believes unusual
circumstances warrant a defensive posture,
the Fund temporarily may commit all or any
portion of its assets to cash (U.S. dollars
or foreign currencies) or money market
instruments of U.S. or foreign issuers,
including repurchase agreements.  Under
normal market conditions, the fund may commit
up to 20% of its net assets to cash (U.S.
dollars) as well as invest up to a total of
35% of its total assets in a combination of
cash (U.S. dollars) and U.S. dollar-
denominated money market instruments of U.S.
issuers, including repurchase agreements, for
liquidity purposes (such as clearance of
portfolio transactions, the payment of
dividends and expenses and share repurchases)
or as part of its ordinary investment
activities.  The fund's investments in U.S.
dollar-denominated money market instruments
are considered to be investments in U.S.
dollar-denominated debt securities for
purposes of the 80% minimum noted above.